Iron Ore Weekly Report

1. Prduct by HSFR Iron Ore Weekly Report YIMENG MEI Analyst Certification No：F0289953 TIANYIN YAO Analyst Certification No：F3042066 Tel：+86-551-6287490

2. Contents 1

3. Market Overview • During the week，DCE I1809 price fluctuated between ¥450-470/ton. • Until 8 June, the open interest of DCE main contract(I1809) increased to about 1.6 millions. DCE Price & Open Interest Source：HSFR,Wind

4. Market Overview • Port inventories returned to recent highs （nearly 160 millions tons), and steelworks inventory days pulled back slightly. Port Stocks & Steelworks Inventory Days Source：HSFR,Wind

5. Market Overview • As the BDI index strengthended recently, freight charges continuously raised. • Shipping rate from Brazil to Tsingtao closed to $20 per tons. Import Freight （USD） Source：HSFR,Wind BDI Index

6. Market Overview • In the week, all mainstream varieties prices decreased except to SFCJ (65%,high grade). Weekly Price Change of Iron Fines Source：HSFR， Wind

7. Market Overview • The price spread between SFCJ and Robe River Fines started to widened marginally. Price Spread (High & Low Grade) Source：HSFR， Wind

8. Market Overview • Until 3 June, CN northern ports recent weekly arrival quantity decreased, from 10.621 to 8.263 millions tons. CN Northern Ports Source：HSFR， Wind

9. Market Overview • The relative price difference inside SGX 3 months and 9 months swaps came down, and fluctuated nearby $1. SGXIron Ore Swap Source：HSFR， Wind

10. Correlation Analysis • Platts index keep trend of low shock disadvantaged, and waved nearby $64. • The difference between Platts Index and CIF stayed below $0.45. Platts Index & CIF and Spread (USD) Source：HSFR,Wind

11. Correlation Analysis • National rate of blast furnace capacity remians above 70%, and reach to 83.28% for mainstream steel. thus, high rate leads to the raw steel output exceed 2 millions tons per day during the week. Blast Furnace Capacity(%) Source：HSFR,Wind Raw Steel Output

12. Investment Recommendation • For viewpoint of fundamental analysis, our supply and demand forecasts indicate that barring any new demand enmergence, such as, replenishment needs, DCE iron ore mainly shock the weak trend in short term. • However, because freight charge maintains modest strength, high cost for the price of imported iron ore forms support. • Recently, steel prices steadily strong, decreasing volume of steel stocks maybe creates directly iron ore demand, and benefits in price of DCE iron ore future.

13. 徽商期货 明道取势 • 【Disclaimer: This report is issued by Huishang Futures Research Institute of Huishang Futures Co., Ltd., as a reference for futures practitioner and investors who trade with Huishang Futures Co., Ltd. While this report has been prepared on the basis of publicly available information and other sources we believed to be reliable, we make no guarantee as to its accuracy, validity or completeness. Under no circumstances should this report be used or relied upon for the purpose of any specific futures trade. You are strongly recommended to seek advice from Huishang Futures professionals before any futures investment and futures trade decision being made. This report shall not be republished or copied, as a whole or in part, without the written consent of Huishang Futures Research Institute of Huishang Futures Co. Ltd.】